Much has been said recently about Brisbane being regarding by Lonely Planet as “arguably Australia’s hippest city”, an “energetic river town on the way up, with an edgy arts scene, pumping nightlife and great coffee and restaurants”. My 4 year old pointed out to me just the other day the number of cranes in and around the CBD. I tell him that’s Cranky the Crane, Kevin the Crane and Collin the Crane; then I run out of names from the Island of Sodor to label the many others. But, there are clearly plenty of developers attracted to Brisbane at the moment and, with them, the hospitality businesses wanting to have a go.

Mixed use multi-level developments create a broad range of licensing possibilities. Typically, the developer will finish construction of the building and then seek tenants for the ground level shops. The tenant usually has to apply for their own liquor licence to suit their business such as restaurant, cafe or small bar.

However, what many don’t realise is that it is possible for the landowner to obtain liquor licences for each tenancy off the plan, without a sod being turned. For example, a proposed development might contain four tenancies on its ground floor level. The owner can obtain separate liquor licences for each of those proposed tenancies in her/his name and then transfer the licences to the respective tenants. This makes the tenancies more marketable, making it easier to secure restaurant, cafe and small bar operators as the process of transferring a liquor licence is much quicker and cheaper than applying for the licence from scratch. This means there is much less uncertainty for the tenant associated with obtaining a new licence in time for opening.

Another advantage with obtaining multiple licences at once is the economies achieved by use of the same information and material as much of it will be identical for each tenancy. This also makes it easier to pass on the cost of obtaining the liquor licence to the tenant. Not only do they benefit from being licensed sooner, they also get the licence for less money and with minimal input from them.

Over the years, we have found this to be a successful strategy for developers. Of course, there’s nothing so lonesome, morbid or drear, than to stand at a built bar ready to go with no beer. And, empty shops mean income is both slim and dusty for landlords. So securing licences early means a more attractive development and ultimately a win-win situation for owners and tenants.

In what is likely to be seen by several industry groups a s controversial change the Newman government’s red tape reduction bill will amend the Liquor Act to remove much of the expense and time constraints associated with the licensing process for restaurants and cafes.

Many existing licence holders will recall the standard process to apply for a liquor licence in Queensland included:

The preparation of a Community Impact Statement

The preparation of a Risk Assessed Management Plan

Seeking the consent of the owner of the freehold property

Advertising the liquor licence application: in a local newspaper, the Queensland Government Gazette and by way of a sign on the premises, to call for community comment or objection.

The completion of police criminal history checks on individuals involved in the application: company directors, major shareholders and individual applicants.

The proposed amendments, likely to pass unchanged from their present form given the Government’s overwhelming majority, will remove all five of these requirements for restaurant and cafe licence applicants under the following circumstances:

The premises is located in a commercial centre

The proposed trading hours do not extend beyond midnight

There is no amplified entertainment on the premises

These changes follow changes to liquor licence application procedures introduced in late 2012 which did away with the need for a successful applicant to provide documentary evidence of compliance with fire, health and building regulations. The combined effect of these changes should see a properly prepared liquor licence application approved in as little as four weeks. Although the application will still involve a range of matters, including Police and Council consultation, town planning and physical inspections, the changes will still considerably reduce the professional costs associated with the preparation and management of the process.

For the first time in the history of liquor licensing law and practice in Queensland, Government initiatives have delivered actual cost savings to new industry entrants.

These come in the form of changes to the advertising requirements for a range of application types, including new licences and variations to trading hours and licence conditions. Along with the anachronistic Government Gazette notices, the requirement to publish liquor licence application details in local newspapers has been abolished, confining the public notification of applications to property signs on the road frontages of the relevant premises. These measures will reduce outlays for applications by up to $1,800.

The other significant change is the removal of the need to provide a letter of clearance from Queensland Fire & Rescue Services to OLGR before the grant of the licence. Government officers are quick to point out that this change does not in any way remove the burden of complying with fire safety requirements. However, individual licensees will now have the flexibility to develop compliance strategies which are adequate and cost effective for their businesses, at a saving of at least $990.

Additionally, although a final inspection of new licensed premises will still be undertake by OLGR officers, licensees will no longer have to produce food licences and certificates of classification in order to secure the issue of the licence. This simple, and obvious, reduction in red tape will add considerable flexibility to the end of the process of establishing a new licensed business in Queensland.

Overall, this red tape reduction equates to a more streamlined process, which in turn means lower professional fees and quicker turnaround times. If you are thinking of making an application, or have considered one in the past but postponed it due to costs, contact us now for detailed costings for your new licence.